Payroll service revenue rose 1 percent for Paychex, which has reported its first quarter ended August 31. That came as checks per payroll rose by 2 percent over last year and revenue per check grew largely by price increases which were partially offset by discounting. And overall, increases in both revenue and net income both rose by 3 percent over last year's corresponding period.
Net income for the most recently ended period was $153.1 million, up from $148.9 percent a year earlier while revenue reached $578.2 million, an increase from $563.1 million. The bulk of sales come from payroll services with income from that source hitting $385.9 million in the most recently ended quarter, compared to $382.3 million the prior year. Human resources revenue saw stronger growth, reaching $182.2 million in the most recently ended period, a rise of 7 percent from $169.7 million.

CEO Martin Mucci noted in this week's forecast that although improvements have been gradual, they have been steady. "Our checks per payroll have improved for 10 consecutive quarters," he said. "Client retention has returned to near historic levels." He also said the online SurePayroll business continued to do well, although the company did not break out any figures. In response to analyst questions, Mucci said there is no evidence of a large numbers of users moving from the traditional payroll business to SurePayroll or from the Internet-based service to the traditional product offerings.

He also said that the company will introduce what he called "best-in-class clientele reporting opportunities for our clients and CPAs" this year. However, he did not provide details on those offerings.